Tell me: what’s happened. Give us a bit of background to this move in both bitcoin and tesla shares, yeah hugely exciting for the cryptocurrency space uh more about institutional uh acceptance. Really so tesla are now announced that they’re going to be accepting bitcoin as payments, but they’ve also bought 1.5 billion. In bitcoin according to an sec filing and why this is significant for bitcoin, of course, and for tesla, but more so for the bitcoin space is. This is now setting the scene for institutional uh acceptance both from an asset management kind of perspective. You know arc investments have actually released a piece saying if every company in the s p 500 allocated one percent uh of their kind of treasuries uh to bitcoin, it would hit 40 000 and if they did 10, it would hit 400 000. So what this is? Basically, being seen as bitcoin is essentially a cash or a cash equivalent. Basically, so traditionally lots of corporate treasuries would have held treasuries. Okay, uh super, you know low risk, you know relatively low return and what this basically gives a green light for is more institutional, uh and corporations holding their cash in bitcoin okay. So this is huge. Let me come in on that. Let me come in on that, because that’s interesting, because remember tim back in november, we did a video about how this time it’s different when bitcoin passed 20 000 towards the end of the year. We did a quick clip this time, it’s different.
Why is it different to 2018 and eddie? It was exactly that thing. It was the feeling that there’s way more institutional involvement here with old dogs. Like me now being interested in crypto and bitcoin, you know back in 2017 back in 2016, i have to admit hands up and i i i didn’t think it was credible. Yet i didn’t think it had been tested enough yet, but towards the end of last year. On that breaker, 20. 000. The reason why this time it’s different is bitcoin had been through, that you know consolidation period it had been tested and the voices talking about the the cryptocurrency was, or you know, were much more institutional one issue i have with this. All, though, is obviously you know going back. A year ago, um elon musk changed his profile to have a bitcoin logo on social media. He’S been pushing this and pushing this also turns out. He’S got a chunky position in bitcoin as well. Should he be allowed to do this? Is this? Is this acceptable? Is this one man got too much power now yeah? I think i think he definitely has a huge influence. All you need to do is look at dogecoin that uh literally joke of a of a cryptocurrency and the effect that he has um, but just to kind of set the precedent. Michael saylor of microstrategy it’s, an another company kind of a consultancy company he’s been around for a long time and he’s kind of set the precedent for converting treasury holdings into this bitcoin.
So it has been done before. But for tesla to do. It is really big. Big news, because you know the cult following that is almost mirrored with tesla and bitcoin right, but in terms of the i have a doge chart here, actually um that i could share yeah. So this is doge um, the prior high. There i mean god. These are very small, increments we’re, looking at the daily bars here um, as you can see, we’re just testing that all time high here at about what was it actually sorry. This is not doge. This is doge here. This is bitcoin we’re, looking at and we’re just getting the doge um coin up, as you can see that small hero 8 was the priority i tested yesterday um on these markets, and you know i think this is probably going to see a bit of a pullback, But then the general lifts, i know a lot of people are going to be talking about. Those doge is everywhere, of course, because this is phenomenal, but i i i’m on eddie’s line. I actually think this story is way bigger than than just dogecoin. This is this. Is global impact when we talk about the fact that treasury departments can start to hold some of their valuation in in crypto the one question i’ve got for you guys before we wrap up this short uh update? Is you know, i’ve been following elon on twitter for a while the impact that he’s had just over the last sort of two or three weeks, it’s kind of like he’s, got the power bug i’m? What i’ve seen in the past time and time again and we’ve seen this actually going back a long time in the past? Is power is addictive and it’s uh creates a drug, and i i maybe there’s a long way to go on this, but we saw what happened with trump and his twitter, but you know: is there a danger that elon’s actually beginning to push it too far? And i think there’s cases here that look he’s been promoting bitcoin for a year and then to make this announcement i mean you know he always knew he would make this announcement.
There’S. Definitely something odd here. The fact that you know one person can have such an influence over uh asset prices and benefit from that influence. I don’t know whether i’m pushing too far down that line but i’m just beginning to get a whiff of this getting a little bit out of control. I think he’s actually in a little loophole there, where i think he is beyond sec, reach right on this, because the crypto space is pretty much unregulated, so i think he’s in a loophole at the moment, yeah i i don’t know experience has taught me if someone You know irritates the industry that much like you saw perhaps with the what the uh the games, yeah there’ll, be some kind of just one interesting thing on this is um the new there’s, a new sec chairman, actually uh, and he is very understanding of cryptocurrency. He actually spent time at mit uh, so he has a good understanding of uh of the space there’s also been uh someone underneath him. The head of cryptocurrency research has actually been promoted to directly report to him. This bitcoin was not um really accepted from the previous sec chairman, but this new one does have an in an understanding from his time at mit, so yeah interesting things to come. Absolutely well, listen guys! Thank you! So much for this wrap just to finish on uh. On this chart of bitcoin – and i mean tesla – shares – are up now what uh nearly two percent um one and a half – i don’t have those up looking at bitcoin now, but you know you can see this move on on a longer term.
Time frame it’s been phenomenal, but we were definitely right end of november 2020. This felt different. It felt more institutional. It felt like there’s a lot more depth to it, so yeah tesla up 2.5 percent.